All about Post Office Senior Citizen Saving Scheme

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Post Office Senior Citizen Saving Scheme

Senior Citizen Saving Scheme (SCSS) is a post office saving scheme for senior citizens above the age of 60 years. Applicants older than 55 years but lesser than 60 years can also open Post Office Senior Citizen Saving Scheme if they have taken voluntary retirement or have retired on superannuation (subjected to terms and conditions). For amounts lesser than Rs. 1 lakh the payment can be done in cash. For amounts more than Rs. 1 lakh the payment can only be done via cheque. Let’s discuss the scheme in detail below:

Features of Post Office Senior Citizen Saving  Scheme (SCSS)  

A post office senior citizen saving scheme makes a good investment option for people who have retired as it offers an interest rate of 8.6% w.e.f October 01, 2019. Below are the important features of post office senior citizen savings scheme:

  • Post Office Senior Citizen Saving Scheme Maturity Period of SCSS: 5 years
  • Post Office Senior Citizen Saving Scheme Multiple Accounts: In SCSS a depositor/subscriber can have an individual account or a joint account with their spouse. The spouse not necessarily be a senior citizen and the first depositor will be considered as the investor. And the maximum deposit limit in the joint account still remains at Rs. 15 lakhs (in the multiples of Rs. 1000) only. Though individuals can open multiple accounts the collective balance in all the accounts cannot exceed Rs. 15 lakh.
  • Post Office Senior Citizen Scheme Nomination Facility: This Scheme allows the nomination facility while opening or after the opening of the account. The depositor can nominate any person by filling an application in Form C.
  • Post Office Senior Citizen Saving Scheme Account Transfer: The account is easily transferrable from one post office to another. 
  • Post Office Senior Citizen Scheme Premature Closure: This scheme permits pre-mature closure- after one year on deduction of 1.5% of the deposited amount and 1% of the deposited amount after two years. Once the scheme is matured, it can be further extended for three by filing an application within one year of maturity. In that case, the Senior citizens saving account can be closed without any deduction after the expiry of one year of the extension.
  • Post Office Senior Citizen Scheme Tax Benefit: The depositor can claim tax benefits under Section 80 C on the deposited amount.

Minimum and Maximum Deposit in Post Office Citizen Scheme

The scheme offers a steady source of income with one time investment of a fixed sum. However, the minimum limit of investment is Rs. 1000 and maximum is Rs. 15 lakhs.

Eligibility Criteria to Open Post Office Senior Citizen Saving Scheme Account

Minimum Age Criteria for Post Office Senior Citizen Scheme: 60 years

Special Age Criterion: 55 years to 60 years in case of voluntary retirement or superannuation. Provided the account is opened within a month of receiving retirement benefits and the amount shall not exceed the retirement benefits.

Post Office Interest Rates for Senior Citizens

The interest rate on the post office senior citizen scheme is decided by the Central govt. every year. Currently, it is 8.6% per annum (for October 01 to December 31, 2019) 

Post Office Interest Rates Table 2019

Post Office Senior Citizen Saving Scheme Interest Rate
Public Provident Fund (PPF) 7.9% compounded annually
National Savings Certificate (NSC) 7.9% compounded annually but payable at maturity
Senior Citizen Savings Scheme (SCSS) 8.6% per annum from 31 March / 30 Sept / 31 December
Kisan Vikas Patra (KVP) 7.6% compounded yearly
Time Deposit Account (TD) 6.9% to 7.7% p.a. calculated quarterly
Post Office Recurring Deposit Account (RD) 7.2% per annum compounded quarterly
Post Office Monthly Income Scheme (MIS) 7.6% per year payable monthly
Sukanya Samriddhi Yojana (SSY) 8.4% per annum compounded annually
Post Office Savings Bank Account 4% per annum

Post Office Senior Citizen Saving Scheme - List of Documents   

To make Investment in Post Office Senior Citizen Saving Scheme, the following documents need to be submitted by the applicants:-

  • Fill the application form available at the Bank or Post office
  • Fill The Know Your Customer (KYC) form
  • Provide the Permanent Account Number (PAN) Card Number
  • Address Proof
  • Recent Photograph
  • Age Proof
  • Aadhaar Card
  • Retirement Benefits’ Disbursal Date

Also, the Applicant’s Employer Certificate mentioning the retirement VRS or Superannuation needs to be submitted.

How to Open Senior Citizen Saving Scheme in Post Office?  

To make payment by cash the amount should be lesser than Rs. 1 lakh and if it is above Rs. 1 lakh then it possible to pay by cheque. Submit all the documents that are mentioned above.

Carefully fill the SCSS Account Opening form while providing the nominee details. Also, the original identity proof is required for verification purposes. Finally, get a witness signature and complete the procedure to get started.

In order to automate the scheme, it is required to have a saving bank account and place a request for automatic transfer of Senior Citizen Scheme interest to the RD account through the depositor’s Post Office Savings Account.

Online Payment Facility for Post Office Senior Citizen Saving Scheme

Online payment facility is only available for Post Office RD account through ECS or Electronic Clearing Service. Also, one can get the payment done from an agent through the post office agent portal and he can make the payment online on the behalf of the depositor.

It is better to check with the post office branch to seek clarity regarding the Post Office Senior Citizen Scheme online payment.

Hope the above information proves to be helpful in case you want to open an SSCS Account in the Post office. Below are some of the frequently asked questions that you can refer to.

Post Office Senior Citizen Saving Scheme FAQs    

Q1. What is the maturity period of the Senior Citizen Scheme post office scheme?  

The maturity period is 5 years, which is further extendible for another 3 years, in case it is required.

Q2. How can I find the maturity amount of the Senior Citizen Scheme? 

To calculate the maturity amount it is better to use the online post office SCSS calculator. When calculating the amount, make sure that you enter the correct rate of interest for SCSS.  

Q3. Are premature withdrawals permissible for the Post office Senior Citizen Scheme?

Post office Senior Citizen saving Scheme permits prematurely withdrawal only after completion of one year period. In case of premature withdrawals before 2 years the account holder needs to pay a penalty deduction, which is equal to 1.5% of the deposit. In case of

premature withdrawals after two years but before maturity, there is a penalty deduction of 1% of the deposit.

Q4. Is it possible to open a Post Office Senior Citizen Saving Scheme Account online?       

You cannot open a post office senior citizen scheme online. You will need to open an account in the post office itself. When the account is opened you can opt for the e-banking facility of India Post.

Q5. Where Can You Open a Post Office Senior Citizen Saving  Scheme Account? 

If you are a senior citizen and want to open an SCSS account, you can do so by visiting the nearest post office branch in your area.

Q6. When is the interest from the SCSS scheme received in the post office?  

The interest earned on this scheme is paid on a quarterly basis. It is paid on the 1st working day of April, July, October and January.